Bondi Beach, Hall St, shop and apartment owners band together to sell to developers with $20m price guide
The individual owners of two shops and six apartments have banded together to sell their building for maximum impact … they have a $20m price guide for a December 13 auction.
And the odds are looking good for the eight owners, given the red-hot location of the 593 sqm site at 27 Hall St, Bondi Beach and some sales across the road earlier in the year.
The new owner could upgrade the current 1935-era building — which generates an income of $457,000 per annum — and, subject to council approval — build a new block of units on the land behind.
“The eight owners were discussing whether to upgrade the building or take advantage of its development potential,” says Jeremy Wiesner of Wiesner Property, who shares the listing with Jerry Leis and Allan Levy of Metro Commercial.
“They’re not developers — they’re investors — so they decided to get together and put it to the market and leave it to someone else to take advantage of the site.”
Leis says selling as a group made good financial sense. “It’s worth a lot more sold in one lot than individual owners — they can literally have another structure on the site at the back.”
Even with the profits divided up, the six apartment owners stand to do well on their investments. The least expensive unit, a two-bedder at No. 6, cost its owner $500,000 in 2006. And the most expensive unit, a three-bedder at No. 1, cost $866,000 last year.
The Westpac building across the road sold for $17m and the shop next door to that, with multiple studio units above, sold for $18m, earlier in the year.
The two shops at 27 Hall St are currently tenanted by Vodafone in one and a phone repair shop in the other.
The investor owner of the shop next door — now the Post Office but previously the Surf Dive and Ski Shop — is already cashing in on the potential of his site.
He’s just lodged a development application with Waverley Council for eight apartments above his shop.
The six apartments consist of two three-bedroom apartments on the ground; two two-bedders with sunrooms on the first level and two two-bedders on the upper level.